Cashless Society: The Impact of Payment System Digitalization on Transaction Patterns Society

Abstract

The digitization of payment systems has driven changes in people's transaction patterns and accelerated the transition to a cashless society, particularly among Generation Z, who have a high level of technological adaptation. However, the increased use of digital payment instruments does not automatically eliminate the use of cash or guarantee the creation of equitable financial inclusion. This research aims to analyze the impact of the digitization of payment systems on the transaction patterns of Generation Z and identify the gaps that arise in the transition process. The research uses a descriptive qualitative approach with a phenomenological orientation through a literature research based on secondary data obtained from scientific journals, international agency reports, and official publications from financial authorities. The data is analyzed through conceptual synthesis and critical evaluation of the latest empirical findings. The results of the research show that despite the significant growth in digital transactions, Generation Z has not completely abandoned cash due to considerations of privacy, data security, and transaction costs. In addition, three main challenges were identified, namely low digital financial literacy, security risks and consumer protection, and regional disparities in infrastructure access. This research concludes that strengthening digital literacy, improving payment system security, and implementing inclusive policies are necessary to create a fair and sustainable payment ecosystem.